Laserfiche WebLink
Grand Valley Water Users Association Agenda Item 17a <br /> September 21-22, 2016 Board Meeting(Updated September 22, 2016) <br /> Page 7 of 8 <br /> CWCB Loan Program <br /> Financial Analysis <br /> Based on agricultural acres (90%) and non-agricultural acres (10% at middle-income municipal) in the <br /> Association's service area, the Association qualifies for a blended interest rate of 1.55% for a 30-year <br /> term. Table 4 provides a summary of the Project's financial aspects. <br /> TABLE 4: FINANCIAL SUMMARY <br /> Total Project Cost $800,000 <br /> Borrowers Contribution and Grants $650,000 <br /> CWCB Loan Amount $150,000 <br /> CWCB Loan Amount (Including 1% Service Fee) $1,500 <br /> CWCB Annual Loan Payment $6,353 <br /> CWCB Annual Loan Obligation (1St Ten Years) $6,988 <br /> Number of Shares 1,754 <br /> Annual Loan Obligation per Share $3.98 <br /> Current Assessment $116/acre to $154/acre <br /> Annual Roller Dam Assessment* $100/share <br /> In 2014 the Association began collecting $100 per account to help cover costs associated with <br /> anticipated Roller Dam improvements. That increase is expected to cover the CWCB debt service and <br /> no additional increase in assessments is expected for this Project. <br /> Creditworthiness: The Association has no existing debt. It anticipates future debt service with the <br /> CWCB for costs associated with the reconstruction of the Grand Valley Power Plant and additional <br /> rehabilitation work at the Roller Dam. <br /> TABLE 5: FINANCIAL RATIOS <br /> Financial Ratio Past 3 Years Future <br /> w/ Project <br /> Operating Ratio (revenues/expenses) 103% 103% <br /> weak: <100%I - average: 100% - 120% - strong: >120% (average) (average) <br /> $2.52M/$2.44M $2.52M/$2.45M <br /> Debt Service Coverage Ratio 1159% <br /> (revenues-expenses)/debt service N/A (strong) <br /> weak: <100%I - average: 100% - 120%j- strong: >120%1 ($2.52M $2.44M) <br /> $6.9K <br /> Cash Reserves to Current Expenses 21% 19% <br /> weak: <50% - average: 50% - 100% - strong: >100%1 (weak) (weak) <br /> $522K/$2.44M $480K/$2.52M <br /> Annual Operating Cost per Acre-Foot (260,000 AF) $9.38 $9.69 <br /> I weak: >$20 - average: $10 - $20 - strong: <$10 (strong) (strong) <br /> $2.44M/260,000AF $2.52M/260,000AF <br />